4 October 2013
Leading companies are starting to think about the impact they have in a most holistic sense. Companies need to start thinking strategically about how they interact with global mega trends like growing populations, dwindling natural resources and climate change in order to stay relevant in the 21st century. Such companies have started to look into ways to measure their value in financial (to shareholders and to themselves) and non-financial (to society) terms. This ability to account for both financial and non-financial value could give businesses a unique perspective on decision-making.
By allowing management to see the relative trade-offs in value, companies can make a more balanced decision about how their decision will benefit all stakeholders.
TIMM is a framework developed by PwC to assist companies in thinking in a more integrated way and enabling them to see the value they have in a more holistic sense. TIMM was developed over a period of 3 years, to help clients measure and manage goals and track performance against set objectives. It also enables better engagement with government concerning license to operate and helps change mind sets to adopt a more holistic perspective and move towards Integrated Reporting.
The TIMM framework puts a value (positive or negative) on impacts across four key dimensions namely society, tax, economics, and the environment to help businesses understand how are stakeholders affected by their choices. It gives businesses the ability to compare strategies and investment choices, evaluating the total impact of each dimension.
For example, if a beverage company in Africa has a choice between importing certain raw materials and growing them locally, TIMM is able to provide an overview of the total impact for each option as illustrated below:
Upside: more water for the community
Upside: communities benefit more (jobs + health etc) + lower GHG emissions
Click on this link to download our report entitled “Measuring and managing total impact: A new language for business decisions”, which was launched at the United Nations MDG Innovation Forum on 24th September 2013.
Our Sustainability and Climate Change team can help you integrate sustainability into your organisation's long term strategic and operational plans to create lasting value, enhance reputation and build public trust. Our team offers you support in strategic sustainability, carbon management, supply chain operations, assurance and reporting, governance, risk and compliance, policy and economics and tax and the regulatory environment.
For more details on our service offering, feel free to contact any one of our team members.
We’ll be using "Ahead on Sustainability” as the platform to share developments and "nice to know" matters on the sustainability and climate change agenda. We hope you’ll find this useful and interesting and we look forward to your feedback or questions.